Claris Lifescience to sell off at twice Market Cap Valuation ?
Where Monies are involved there will be Stink!
This Generalisation fits Stock Markets wonderfully well !
I believe ,and have quoted often and even set a MBA Post Graduate Final Examination question to discuss with real illustrations that ‘India & Insider Trading are Inseparable’…and I daresay,deliberately kept so !
Let’s take this morning’s Headline on Page 1 in the Mumbai Edition of India’s leading and influential pink paper
Cadila Healthcare to acquire Claris Lifesciences for Rs 3400 crore
Such Acquisition News has been floated by the same reporter of the same newspaper just a few months ago on February 12,2015
Big pharma eyes takeover of Claris’ injectables business for Rs 2500-Rs 3000 crore
When BSE sought Clarification from Claris Lifesciences today,May 21,2015 and even on February 12,2015 here are the two replies from the Company
Clarification to BSE by Claris today, May 21,2015
“As a company policy we do not comments on any market rumour and speculations. The Company continues to explore and evaluate inorganic and strategic opportunities in various forms from time to time; however nothing definitive in this regard has happened. We will notify the exchanges upon occurrence of any definitive developments in this regard.
Also as a company we inform stock exchange for any such information which is required under listing agreement as well as clause 36 of the listing agreement.”
Clarification to BSE by Claris on Feb 12,2015
“we state that at present we are not negotiating the sale of stake in the injectables business, and the Board of Directors of the Company has neither considered nor taken any decision in this regard.
For the growth of the business, Company continues to explore and evaluate inorganic and strategic opportunities in various forms from time to time, however nothing definitive in this regard has happened. We will duly notify the exchanges upon the occurrence of any definitive developments in this regard.”
Relevant Share Price Movements in February 2015 May 21,2015 reveal the huge impact of such News by a leading pink paper
February 12,2015 ~ A Day Before,On & a Day After
|
Date |
Open |
High |
Low |
Close |
WAP |
No. of |
|
| 11/02/15 |
207.80 |
212.00 |
205.10 |
206.90 |
207.05 |
1,00,569 |
|
| 12/02/15 |
238.40 |
248.20 |
228.50 |
248.20 |
240.08 |
7,95,565 |
|
| 13/02/15 |
269.80 |
293.00 |
250.10 |
258.50 |
272.86 |
14,86,607 |
Opening February 2015 at Rs 175 and moving to just over Rs 200 levels by February 11,2015 before hitting and closing on upper circuit of 20% at Rs 248 on February 12,2015 on impact of the Newspaper Story with heavy abnormal volumes and despite Company Clarification (see above) that was posted on BSE Website at 2.42 pm during market hours that they are not negotiating any such sale the Share Price yet hits up 18% at Rs 293 the next day,February 13,2015 with nearly double the Feb 12,2015 volumes !